Markets calm as funds predict return to health
CITY fund managers yesterday backed struggling emerging markets to return to health, as cooling volatility offered a brief lull after two weeks of turmoil.
The MSCI emerging market index was flat, with equities at their cheapest since August. The turmoil began after the Fed began discussing tapering quantitative easing. Fund managers yesterday said the market scare was being overplayed. Goldman Sachs Asset Management head of global portfolio solutions international Kathryn Koch said: “We haven’t seen institutional abandonment of the asset class. The problems in emerging markets are more cyclical than structural.” Aberdeen Asset Management’s Devan Kaloo added: “It’s a natural, healthy adjustment. We’re still bullish. We expect that money to come back.”